What does 2012 bring apart from the historical Olympic Games and the Queen’s Diamond Jubilee – well I have to say iconic buildings and the pooling of multinational skills from great construction companies across the globe. What cannot escape anyone’s attention is the rise of the iconic Shard which has been three years in the making.

What makes this construction and build project so special apart from anything else is that this will be one of the tallest buildings in Europe. Construction workers from across the world have braved dizzy heights to erect a spire of steel and glass making the final building 1,017ft high – standing 230ft higher than the tallest building at Canary Wharf. The spire will sit above offices, hotel rooms and viewing galleries – no doubt with the best views of the capital.

The building was the brainchild of Italian designer, Renzo Piano. Twelve years ago inspirational Renzo gave birth to his vision of constructing an iceberg emerging from the Thames by London Bridge.

We have had the privilege of working with some of the construction companies involved with the Shard as well as the London Olympic 2012 stadium. Helping these construction companies remain compliant within HM Revenue and Custom’s Construction Industry Scheme and VAT has been a full time job and we have successfully helped our construction clients deal head on with the idiosyncrasies of construction accountancy legislation, so keeping the build on track.

Who would have thought that a London based modern glass window of epic proportions could unite international construction workers to such a degree. There is no doubt that the Shard will go down in history along with London 2012 and the Queen’s Jubilee celebrations this year.

Find a qualified accountancy practice for starters. Did you know anyone can set up in business as an accountant without training. How worrying is that? So look for one that is certified or even better chartered and belongs to a professional body. Think about the type of firm you would like to work with. Local means accessible!

Outline your service needs and expectations – This is a two-way street so state what service levels you are looking for, ideally in writing. If your accountant is any good you will be allocated a dedicated contact point. If not then ask for one.

Find out what other services your accountant offers. These days you need more from your accountant than tax returns and accounts. A good accountant will provide business guidance and support, financial planning and propose ways to minimise your tax liability.

Find an accountant with a good contact network - any accountant worth his or her salt will have a ready-made network of people and useful trades on their books. Perfect for referrals and possibly preferential rates.

Find an accountant who keeps in contact – get yourself a local accountant and arrange regular meetings to review your business plans and performance to get the best value. Meet up before the end of year accounts and when your tax return is ready. You never know what you may learn.

Look for an accountant with sector experience – find an accountant with experience of your type of business who will understand the rules and regulations and key issues you face.

Focus on your strengths – if business growth is your main goal  and budget allows then outsource jobs like book-keeping, payroll and invoicing to free up your time.

Check fees periodically – review your accountant’s fees every few years.  If deadlines are constantly missed, partners are not accessible and don’t go the extra mile, you should think about changing your accountant.

Review your business – a good accountant will help you grow the business, identify risks or advise on the levels of investment needed. Look for one that can support your business growth stages from business expansion, diversification and business valuation when you come to sell.

The brunt of the Budget appears to fall on the middle working class while top earners can look forward to a reduction in the 50p rate of tax and those at the other end of the lower income spectrum may well be taken out of tax altogether as a result of an increased personal allowance.

I can’t help but feel a degree of scepticism as regards the comments about tackling tax avoidance. It seems to suggest that this was simply tolerated in the past but will no longer. As to where the armies of highly trained tax inspectors will come from to fight the good fight I have no idea.

High earners celebrate a small win with the reduction of tax from 50p to 45p but given that it does not come in until 6 April 2013 there will be no need to bring forward any bonuses.

It’s good news for businesses too with the main rate of Corporation tax cut to 24% and with promises of further reductions in the coming years. While the increase in the personal allowance to £9205 will be welcome news the announcement that the government intends to abolish age related allowances for pensioners seems to my mind to be disgraceful.

Individuals who own UK properties via overseas trusts and companies will also need to review their affairs given the announcements that theses structures will no longer be effective for avoiding capital gains tax and stamp duty.

My biggest disappointment is the absence of detailed draft non-residency legislation! Another year of being left in the dark!

Read more – handy Budget 2012 guide

The Chancellor unveiled a range of measures in the Budget 2012 that left no doubt that the ‘age of austerity’ is not yet over. Though thanks to a steady stream of pre-Budget announcements and leaks, Mr Osborne had little to offer in the way of surprises other than the gaping omission of non-residency legislation!

The Budget highlights included:

• The personal allowance will be increased to £9,205 in 2013/14, but the higher rate threshold will be reduced by £1,025 to £41,450.
• There will be a limit on the maximum amount of income tax reliefs that can be claimed from 2013/14.
• As expected, from 2013/14 there will be a drop in the higher rate of income tax from 50% to 45%.
• The so-called ‘mansion tax’ has taken the form of higher stamp duty on house sales over £2 million.
• Child benefit is to be phased out where income is over £50,000.

If you would like to discuss how the Budget affects you please call me on 01344 620495.

For up to the minute news follow my live Budget tweets http://twitter.com/dbsellek 12.30pm today.

I’d have more chance of winning at Cheltenham Races than predicting what’s going to be in the 2012 Budget. In my opinion it is all up for grabs on 21 March. Will the government introduce a mansion tax, cuts to pension tax relief or increase the tax threshold is anybody’s guess at this point. For what it is worth here are my thoughts on the 2012 Budget:

50p tax versus mansion tax

Tax as ever along with closing tax avoidance loops are the hot topics this Budget. Everyone agrees the higher earner 50p contribution isn’t fair, not least John Redwood who claims a 40p tax would collect more money than 50p anyway. This idea of swapping the 50p tax for a mansion tax is fatally flawed in my mind and would certainly have a disproportionate effect on the South East. Watch this space..

Pressure on working tax credits this Budget

The Chancellor is under increasing pressure to reverse the working tax credit and child benefit cuts due this April. The increasing pressure from media and politicians for some kind of transitional relief may provide some give here.

Businesses and the Budget

Optimisim among businesses rose to its highest levels in February according to BDO Business Trends with increased confidence in manufacturing and services. Businesses can look forward to a welcome drop in the main rate of Corporation Tax to 24% from April with the Sunday Times reporting that Chancellor Osborne will announce plans for Corporation Tax cuts to 20%. The Workplace pensions law changes are still on the cards but paired down so only impacting larger businesses from October. On the whole the Government does seem to be doing its best to prevent corporate migration, thankfully.

Residency rule changes on track this Budget

I would be very surprised if the previously announced residency rules to increase annual charges from £30,000 to £50,000 don’t come in. This would cause some major head scratching if this didn’t happen.

Pensions rush before the Budget

Higher earners are clamouring to claim pensions tax relief amid speculation the Chancellor may do away with higher rate tax relief.The possible abolition of the high rate of tax relief just further illustrates this type of investment is difficult to plan for in light of the constant tinkering with pensions of late.

Follow my live Budget tweets http://twitter.com/dbsellek 12.30pm Wed 21 March 2011

Is there really no more interesting way to start this entry other than the pathetic refrain of “Dear diary “? I suppose my preference would be to boldly go where no tax advisor has gone before with “Captain’s Log 20 February 2012”, but then again I could never get past the schoolboy humour attached to this introduction and I could really do without any further problems with the Advertising Standard Authority. They never really understood the marketing philosophy behind my proposal to buy advertising space on the kit of the UK Olympic women’s beach volleyball team and despite what they say, with careful arrangement of the words it is possible to fit Davis Burton Sellek on a bikini! Still best not to antagonise them!

 Anyway where are we? Oh yes, January’s finished, the Tax Returns are all in and the scars on my back are healing over quite nicely.  My public where very kind to me this year and lavished their attention on me throughout the whole month.

Once the accounts team are released from rehab I’m really looking forward to pushing on with some of the more interesting project work that’s on my desk at the moment. I’m making some serious headway with the Rt Hon Mr Salmond’s R&D claim for tartan paint and I’m feeling quietly confident that my application to edit the economics page of the Sunday Sun will be looked upon favourably.

I’m not quite so sure of my chances of success as concerns attracting inward investment into the latest issue of Busby Bonds but the ECB seem quite flush with cash at the moment so I’m not giving up just yet.

Anyway time to be getting back to some proper work, nose to the tombstone and all that!!

Watch Out!  As usual for this time of year, there is another email scam going around, with people posing as HMRC.  Always contact your accountant – do not reply to any emails from HMRC however plausible they sound. 

Current email scam reads along the following lines:

“After the last annual calculation of your fiscal activity, we have determined that you are eligible to receive a tax refund of 973.90 GBP. Please submit the tax refund request and allow us 5-7 days in order to process it.

Please download the document attached to this email to confirm your identity.

Note: You will need to provide a valid bank accoun in which the funds will be payed to.
A refund can be delayed for some reasons, for example submitting invalid records or applying after deadline.”

Best Regards,
HM Revenue & Customs.

The Problem The legislation couldn’t have come at a worse time when temporary workers have become the preferred option for employers and businesses looking to avoid taking on unnecessary full time staff.  It is still not crystal clear whether the impact of the changes are going to be a problem in practice for the agency or employer (hirer). 

Possible solutions

1. The only way I can see around the Workers Directive is to not employ temporary staff for longer than 12 weeks, the cut-off point before they are entitled to full time employment rights.
2. The alternative is a Self-employment agreement when employing casual workers showing the Agency Workers Directive does not apply.
3. In situations where workers are engaged in the medium to long term and employment is not a satisfactory option for either party, the Service Provider could set themselves up as a Limited company if there is no other way forward for the “hirer”.

How has the Agency Workers Directive impacted your plans to recruit temps?

• Go back to basics: tighten financial management and make sure debtors stay within payment terms. Ensure your books are reconciled to your bank account and all differences explained. Chase clients as soon as payment terms are exceeded. Identify high or extraordinary types of expenditure in historical records e.g. insurance premiums due and consider spreading payments to assist cash flow.
• Ensure books written up regularly so they are a useful financial tool rather than something for the taxman.
• Consider trading as Sole Trader or Partnership whereby availability of loss relief is more flexible
• Be nice to your Bank Manager
• Always talk and negotiate with creditors if you can’t pay for any reason. Don’t stick your head in the sand – it won’t go away.
• Don’t flog a dead horse. Where a business is broken, wind it up. Declaring yourself bankrupt as sole trader is not recommended. Limited companies who think their trading model is longer viable should wind up promptly to limit losses, restructure and move forward. Even if Limited Liability company, creditors can pursue directors personally where finances are mis-managed.